Japan - Country Commercial Guide
Cloud Computing

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Last published date: 2022-01-07

Overview

Table: Domestic Public Cloud Market (USD million) 

 

2018

2019

2020

 Market Size
($ million)

6,240.95

 

8,021.55

9649.90

 

Market Growth Rate

31%

22%

-

Exchange Rates

106.78

109.02

110.40

Source: IDC domestic public cloud service market research for 2018, 2019, and 2020

*Market Growth is based on Japanese YEN to eliminate exchange rate effects.

In recent years, changing business circumstances have accelerated Japanese corporations to shift to cloud-based technologies and systems. In 2020, market intelligence provider International Data Corporation (IDC) released its “Japan Cloud User Survey.” 42.3% of Japanese companies responded that the importance of utilizing cloud services has been continuously increasing. Among all the companies who already had implemented Cloud Services, 65.5% of firms surveyed in 2020 indicated a need for clear Cloud First Strategies that fit a company’s overarching objectives – an increase of 12% from 2019’s 58.5%.  Analysts project that from 2020 to 2025, Japan’s public cloud services market will grow by 19.5% annually. The market size is expected to grow to approximately $23.5 billion in 2025, 2.4 times the market size of 2020.

With regards to the market share of Infrastructure as a Service (IaaS) in 2021, the MM Research Institute announced that in Japan, Amazon Web Services held a market share of 40.3%, Microsoft Azure acquired 26.3%, and Google Cloud secured 13.7%, so U.S. cloud firms continue to hold approximately 80% of the market in Japan.

In May 2021, the Japanese Government passed laws to establish a new government agency called the Digital Policy Agency with the goal of strengthening the country’s digital transformation. With the establishment of the Digital Policy Agency, it is expected that Japan’s shift to cloud technology will be promoted to not only the private sector but also to Japanese and local governments as well. The agency will have roughly 500 officials, of whom roughly 120 members, including ICT engineers, will be recruited from the private sector.

Sub-Sectors

Within the public cloud space, the Fuji Chimera Institute (FCI) published that the Software as a Service (SaaS) is the biggest market area, growing 23.7% in 2020 compared to 2019. FCI estimates that the SaaS market will continue increasing due to the acceleration of Digital Transformation (DX) technologies. In addition, the Platform as a Service (PaaS) market has been growing 35.3% due to a growing number of corporations implementing PaaS that can provide data analytics related to DX technologies, AI, and IoT.

Events

Japan IT week, Spring
April 6-8, 2022, Makuhari Messe

CEATEC 2022
October 2022, Makuhari Messe (TBD)

Resources

Ministry of Internal Affairs and Communications   

CS Japan Contact

Ms. Atsuko Shimada, Commercial Assistant
Atsuko.Shimada@trade.gov